Buy ICICI Bank: Regan Homavazir

Regan Homavazir, Associate VP-Technical Research, Darashaw advises to buy ICICI Bank at current levels.
 
Homavazir told CNBC-TV18, “ICICI Bank is a buy. The worse case scenario in ICICI Bank is about Rs 970. So, ICICI Bank looks promising. Let us take it in perspective with the bankex. The bankex is trading at a very significant support. It appears that the bankex itself is showing an opportunity of over 11-12 percent in which case, ICICI Bank, State Bank of India (SBI), HDFC Bank are going to be large beneficiaries of that upmove.”
 
He further added, “We are expecting ICICI Bank, SBI and HDFC Bank to stabilise here. If we look at non-banking but financial related companies, we are very bullish on Reliance Capital. We do not see significant downsides emerging there. On the contrary, we are looking at something like Rs 480 coming on Reliance Capital. It is basing out at the moment. So, Reliance Capital is one stock that we will look at. If you want to look at something in the second-rung banking sector, it would be a Karur Vysya Bank. It has met its worst case scenario and we do not expect downsides there. We are expecting the stock price to inch higher. Our initial targets are about Rs 580 and our longer-term targets stand at around Rs 800.”